Apple’s Worst Ever Crisis in India: Sales Plummet By 35%; Market Share Reduced To 2.4% In Q2 2016

The legend of Apple and iPhones is experiencing its worst ever crisis in India. As per new reports emerging, iPhones sales in India has dropped by 35% during Q2 of 2016, compared to Q2 of 2015. And due to low sales volume, iOS market share has been reduced by 50% as Android is threatening to capture the whole market with massive 97% share.

Considering that India is Apple’s next big market after China failed to lift their spirits, this is indeed a depressing report for Tim Cook.

As per report prepared by Strategy Analytics, smartphones sales in India has increased by 19% and touched 31 million units during the second quarter of 2016, but Apple isn’t getting any major share of this increment. With 97% share, Android remains the numero uno choice for Indians when it comes to smartphone sales.

During Q1 of 2015, Apple commanded a 4% share of the overall smartphone sales in India, which has now reduced to mere 2% during Q2 of 2016 as they managed to sell just 0.8 million units all over the country.

Overall, total of 30.7 million smartphones were sold in India during Q2 2016, compared to 25.8 million during Q1 2015, thereby making us world’s 3rd largest smartphone market after US and China.

Price Is The Biggest Barrier For Apple?

It seems that the expensive price tag associated with Apple’s products is proving to be its biggest barrier. The report clearly mentions the fact that Apple will need to revise their pricing strategy if they wish to make any dent in the Indian smartphone market.

Woody Oh, Director at Strategy Analytics said, “Apple iOS will need to reduce iPhone pricing to cheaper levels, attract more operator subsidies and enlarge its retail presence through Apple stores or online channels if it wants to regrow significantly in the future.”

With a price range of Rs 62,000 to Rs 92,000 for their latest models, even Tim Cook, CEO of Apple has admitted that Apple’s products are expensive, even as Samsung overtook Apple to become the top premium smartphone seller in India.

On a positive side for Apple, their year on year sales volume in India has increased by 51% during 2015-16, and India reported the highest growth for them, globally. But the results of Q2 of 2016 shows an entirely different picture, a trend which will crush their confidence for the rest of the year.

Apple Outlets in India Can Change Their Fortune?

Now, Apple’s only hope lies in their retail outlets, which have received approval from the Indian Govt. After FDI norms were relaxed, and local sourcing norms changed, Apple will soon launch their own retail outlets where customers can experience their products first hand before buying.

But considering the fact that other smartphone makers such as LeEco, Oppo and others are also considering to open up retail outlets, this single factor can prove to be insufficient for lifting up their sales volume in a country where 9 out of 10 smartphones sold are priced under Rs 10,000.

What can be Apple’s next big strategy for increasing their market share and fight the dominance of Android in India? Will they reduce price, especially for Indian market? Do share your opinions by commenting right here!